Dollar keeps steadier ahead of US CPI report

The picture in the major currencies space is not much changed at all from over five hours ago here. There have been some light extension of the ranges but overall, it’s more or less where we left off at the end of Asia trading. The dollar continues to stay more poised on the week, keeping its post-election momentum.

As mentioned earlier, USD/JPY and EUR/USD are two of the more interesting pairs as they are nearing key technical junctures.

The former is taking a run at the 155.00 mark for the first time since the end of July. On a firm break above the key level, there is little to no technical resistance in that pocket until the 160.00 level.

As for EUR/USD, the pair is down to test the 1.0600 mark with the April low of 1.0601 in play. For now, large option expiries at 1.0600 is also adding another defensive layer. But all of this is tentative up until we get to the US CPI report later.

That will be the next key risk event to watch with a stronger report potentially stirring up further dollar gains and a trigger to breach the technical levels above.

This article was written by Justin Low at www.forexlive.com.